Hottest Markets: The Motor City Hits the Gas

Detroit sped toward the top of the hottest housing markets in August, zipping six spots to No. 4 in realtor.com®’s Hotness Index, according to realtor.com’s latest data preview. Homes are selling in a median 39 days in The Motor City.

“Detroit jumped into realtor.com’s top five hottest housing markets last month,” says Danielle Hale, chief economist for realtor.com. “While prices are increasing in Detroit, homes are still priced about 20 percent below the national average, which has made the market a hotbed for buyers. On top of that, the market’s median income is nearly identical to the national average, which gives those looking for a home a lot of buying power in this metro.”

Prices in August are 10 percent higher than those one year ago, with the national median at $275,000 and the national median age of inventory at 66 days. There are 9 percent less homes on the market year-over-year.

“As we enter the last days of summer, many frustrated house hunters know this tale of steep prices, limited options and intense competition all too well,” Hale says. “For first-time buyers, those conditions aren’t likely to improve much during the fall, unfortunately, though there could be the start of some relief in the mid- to upper-tier.”

The housing markets ranking in realtor.com’s Hotness Index for August: